Efficient portfolio
Efficient portfolio = highest expected return for a given risk
we choose the one we wish according to our preference to risk
expected risk premium = beta * market risk premium
The Capital asset pricing model
capm: r-r(f) = beta (r(m)-r(f))
This model does not work that well since the mid 60’s.
The Capital Asset Price Model: parallel with consumption of two goods (1 market-free investment and a representative bundle of stocks), budget line (trade-off between the expected return and the riskyness of that return= standard deviation), indifference curves (combinations that leave the investor equally satisfied.
R.portfolio/ = R.free-risk inv. + (R.market – R.free-risk inv)// sigma.market * sigma. free-risk inv
Arbitrage pricing theory
Capital structure and the company cost of capital
Why merge >>
|
|
Corporate finance
PART ONE: CAPITAL EXPENDITURE
The present value
Investment
decisions
Practical
problems in capital budgeting
Firms evaluation
PART TWO. BASICS OF FINANCE
The financial
markets
Options
The market
efficiency
Risk
Mergers,
Acquisitions, and Corporate Control
International
Financial Management
PART THREE FINANCING DECISIONS
Corporate
financing
Dividend policy
and capital structure
PART FOUR FINANCIAL MANAGEMENT
Financial
planning
Short-term
financial management
Course created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.
|